Shyam Dhani Industries IPO Day 2: Latest GMP Indicates 71% Listing Pop Amid Strong Investor Demand

The initial public offering (IPO) of Shyam Dhani Industries Ltd. witnessed massive demand on the first day of bidding on Dec. 22, with the issue getting subscribed 58.84 times.

The NSE SME issue of the spices manufacturer attracted bids for 23,17,30,000 shares against 39,38,000 shares on offer, according to the NSE data.

The Qualified Institutional Buyers (QIBs) segment was subscribed 10.43 times on the first day. The Non-Institutional Investors’ (NIIs) category saw a subscription of 77.01 times, while retail investors oversubscribed their quota by 90.08 times.

The SME IPO continued its strong demand as it was booked over 110 times on Tuesday.

Amid the strong investor demand for the Shyam Dhani Industries IPO shares, the latest grey market premium (GMP) indicates a significant listing gain.  

The latest grey market premium for the Shyam Dhani Industries IPO stood at Rs 51 per share on Dec. 23. The latest GMP hints at a potential listing price of Rs 121 per share, implying a premium of 72.86% over the upper limit of the issue price of Rs 70 per share.

Note: The GMP is unofficial and speculative in nature and does not represent confirmed market data. GMP data sourced from InvestorGain.

The Shyam Dhani Industries IPO is a book-built issue worth Rs 38.49 crore. The IPO consists entirely of a fresh issue of 55 lakh equity shares. The price band for the NSE SME issue has been fixed at Rs 65 to Rs 70 per share.  

Retail investors are required to apply for a minimum of two lots comprising 4,000 shares, amounting to a minimum investment of Rs 2.8 lakh per application. Small Non-Institutional Investors must bid for at least three lots, involving an investment of Rs 4.2 lakh. Big Non-Institutional Investors can participate by applying for a minimum of eight lots, which requires an investment of Rs 11.2 lakh.

The IPO subscription window is open till Dec. 24, with the basis of allotment expected to be finalised on Dec. 26. Shares will be credited to the Demat accounts on Dec. 29, while refunds will also be processed on the same day.

The company’s shares are tentatively scheduled to be listed on the NSE SME platform on Dec. 30.

Holani Consultants Pvt. Ltd. is acting as the book-running lead manager, while Bigshare Services Pvt. Ltd. is the issue registrar.

The company will allocate IPO funds for the installation of machinery at its existing manufacturing unit in Rajasthan. A portion of the funds will also be used for repayment of borrowings, working capital requirements and general corporate purposes.

The Jaipur-based company is a leading manufacturer and exporter of premium spices, spice powder and whole spices, among other grocery products.  Its product portfolio includes black salt, rock salt, rice, poha, kasuri methi and a wide range of herbs and seasonings.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.